I’m sure this kind of press release will keep on popping up. More “traditional broadcasters” are trying to muscle-in on podcasting.
It began as a quirkly phenomenom among individuals who wanted to create their own radio shows for on-demand delivery to users of iPods and mp3 players.
But, Podcasting has quickly caught the eye of traditional broadcasters who want “in” on what appears to be a great way to reach new listeners or at least old listeners who somewhere along the way became disenfranchised. Now another company has jumped into the Podcasting fray.
It’s a panic response, but fundamentally unjustified. The podcast market is not like “traditional broadcast". Traditional radio and TV stations make their money on the margins of economies of scale. Setting up studios, cables, transmitters, licences and all that stuff takes big up-front cash. But once in place, adding extra listeners is effectively free. So traditional broadcast companies have developed systems to capitalise on audience figures.
Podcasting turns that on its head. Creating and publishing a podcast is effectively free. But each additional listener adds an extra bandwidth burden. Put simply, podcasts with smaller audiences cost less. Adding extra “generic” listeners is an expense with little or no income associated with it.
Small-audience and ultra-precisely targetted, small-studio podcasts could be an advertisers dream, getting incredible returns per customer. Why pay a bundle to “broadcast” a message to 100,000 listeners who don’t give a fig, when you can “narrowcast” to 15 or 20 who have already expressed an interest for next to no cost?.
My prediction? traditional media will keep a “presence” in podcasting and other point-to-point distribution, but mainly to maintain credibility and keep up listener figures for existing broadcast delivery.
Read more at Radio Quickly Stealing Podcasting From the Original Podcasters